Eva Szalay
Eva Szalay

Coming of age. Social Media reaches critical mass in FX

With barriers to treating social media as legitimate outlets for communication now being lowered across the capital markets, Eva Szalay looks at how these digital channels are being used as tools for FX providers to educate, communicate, establish trust and attract new customers, and also as an invaluable and essential source of news and market sentiment for currency trading firms who are looking alpha generating opportunities.

First Published: e-Forex Magazine 55 / Social Media / January, 2014

Only seven-years after its creation, Twitter now carries more than 500 million messages daily about people’s feelings, opinions and observations. Interpreting and datafying these personal and slang-ridden titbits represents the new frontier for big data processing companies.  The idea of turning text into data is well-established in trading already, with machine-readable news feeds churning information into trading algorithms. Just like then, the buy-side and sophisticated hedge funds and algorithmic trading firms are pioneering the adoption process in their hunt for alpha.  The time is now Louis Lovas, director of solutions at OneMarketData, has recently authored a survey looking at market participant’s attitudes to the trading uses of social media in which he says: “Leveraging Twitter or other social media sources for economic and company information for actionable insight has piqued beyond mere curiosity. The idea of trading based on non-traditional information is also not...continued

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